Authority: IC 12-9-2-3

Affected: IC 12-12-5; 20 U.S.C. 107

Sec. 36. (a) A licensed manager must comply with the business requirements set forth in this section. Failure to comply with these business requirements will result in disciplinary action under section 21 of this rule.

(b) A licensed manager and the manager's employees shall not discriminate against any person in furnishing, or by refusing to furnish, to such person the use of any BEP facility, including any and all goods, services, privileges, accommodations and activities provided by the facility, on the basis of:

1. (1) sex;
2. (2) race;
3. (3) age;
4. (4) creed;
5. (5) color;
6. (6) national origin;
7. (7) physical or mental disability; or
8. (8) political affiliation.

(c) A licensed manager is responsible for the operations and profitability of the assigned BEP facility.

(d) A licensed manager must comply with the terms of:

1. (1) the agreement between the:

   1. (A) state licensing agency; and
   2. (B) licensed manager; and

2. (2) either the:

   1. (A) permit issued to the state licensing agency for the BEP facility; or

   2. (B) facility agreement between the:

      1. (i) custodial authority of the facility; and
      2. (ii) state licensing agency.

(e) A licensed manager:

1. (1) is a self-employed person; and

2. (2) must comply with all applicable federal, state, and local laws, regulations, and ordinances, including, but not limited to, those applicable to:

   1. (A) taxes;
   2. (B) worker's compensation;
   3. (C) unemployment insurance; and
   4. (D) Social Security.

(f) A licensed manager must operate the BEP facility in compliance with applicable:

1. (1) health;
2. (2) sanitation; and
3. (3) building;

codes and ordinances.

(g) The accounting records for a BEP facility shall be kept separate from the accounting records for any other business venture.

(h) A BEP facility shall not be used for the operation of any business venture except a business operated under IC 12-12-5, this rule, or the facility agreement between the licensed manager and the state licensing agency. BEP:

1. (1) money;
2. (2) product;
3. (3) equipment; and
4. (4) assets;

shall not be used in, or commingled with the assets of, any other business venture.

(i) A licensed manager must:

1. (1) accurately complete all reports and forms:

   1. (A) approved by the state licensing agency; and
   2. (B) developed with the active participation of the Indiana elected committee of licensed managers; and
2. (2) submit the reports and forms to the state licensing agency within established time frames.

(j) A licensed manager must file the following reports with the state licensing agency in the format prescribed by BVIS:

1. (1) A monthly report of the gross income, the allowable business expenses paid, and the net income of the assigned BEP facility or facilities. The report for any month is due and must be filed with the state licensing agency by the close of business on the fifteenth day of the following month, except that, if the fifteenth day is on a:

   1. (A) Saturday;
   2. (B) Sunday;
   3. (C) legal holiday as defined by state statute; or
   4. (D) day when state offices are closed during regular business hours;
2. the report shall be due on the following business day.
3. (2) Upon request, a detailed ending inventory of facility merchandise from the prior year must be submitted to the state licensing agency within fifteen (15) days from the date of request.

(k) A licensed manager must establish procedures to:

1. (1) maintain:

   1. (A) inventory control; and
   2. (B) adequate inventory; and
2. (2) ensure correct charges by the suppliers of articles sold at the BEP facility.

(l) A licensed manager must maintain a:

1. (1) physical presence; and
2. (2) personal involvement;

in the daily management and operation of the BEP facility.

(m) A licensed manager shall employ other persons as necessary for the effective and efficient operation of the BEP facility.

(n) A licensed manager is responsible for the following:

1. (1) The conduct of the manager's employees and must ensure that any employee:

   1. (A) is aware of; and
   2. (B) complies with;
2. the business practices set out in this rule.
3. (2) Correcting actions of an employee.
4. (3) Enforcing the business practices that apply to an employee.

(o) If a licensed manager becomes or is unable to personally operate the BEP facility and to perform under provisions of the agreement between the manager and the state licensing agency, the manager must:

1. (1) notify the state licensing agency within two (2) business days;
2. (2) select an individual, approved in advance by the state licensing agency; and
3. (3) make arrangements for that individual to operate the facility in the operator's absence.

If a manager fails or is unable to comply with this subsection, the state licensing agency shall have the right to place a temporary operator in the BEP facility and to assess the costs of the temporary operator to the manager.

(p) A licensed manager shall:

1. (1) obtain each policy of insurance required, in the amount required, pursuant to the operating agreement with the state licensing agency;
2. (2) ensure that each policy of insurance names DDRS as an additional insured;
3. (3) provide the state licensing agency with a copy of a certificate of insurance; and

4. (4) immediately notify the state licensing agency if either:

   1. (A) an insurer; or
   2. (B) the licensed manager;
5. cancels any required insurance.

(q) A licensed manager must ensure that each BEP facility will be open during the days and hours:

1. (1) specified in the:

   1. (A) permit issued to the state licensing agency for the BEP facility; or

   2. (B) agreement between the:

      1. (i) state licensing agency; and
      2. (ii) custodial authority of the BEP facility; or

2. (2) otherwise agreed upon by the:

   1. (A) state licensing agency;
   2. (B) manager; and
   3. (C) custodial authority of the BEP facility.

(r) Articles sold at a BEP facility may consist of:

1. (1) newspapers;
2. (2) periodicals;
3. (3) publications;
4. (4) confections;
5. (5) tobacco products;
6. (6) foods;
7. (7) beverages; and
8. (8) any other articles or services suitable for a particular location as determined by the state licensing agency, in consultation with the custodial authority and the licensed manager.

However, the state licensing agency, in consultation with the custodial authority and the licensed manager, may exclude the sale of various types of merchandise or products at a particular site.

(s) A licensed manager:

1. (1) has the right to make the ultimate decision as to particular brands of articles sold;
2. (2) shall select suppliers of merchandise to be sold at the assigned BEP facility;
3. (3) has full responsibility for all financial arrangements necessary to obtain merchandise for the BEP facility; and
4. (4) must pay all bills, including purchases for goods or services, in a timely manner.

(t) The:

1. (1) possession;
2. (2) consumption; or
3. (3) use;

of alcoholic beverages or illegal drugs at a BEP facility by a licensed manager or by an employee of the manager is not permitted. A licensed manager or an employee of a manager shall not work under the influence of alcohol or illegal drugs at a BEP facility. No alcoholic beverages shall be allowed at a BEP facility unless contractually obligated.

(u) A licensed manager must do the following:

1. (1) Maintain fresh stock.
2. (2) Not sell out-of-date product.
3. (3) Assure that services are provided to customers and the public in a courteous and professional manner at all times. Any contact with the custodial authority or management of the BEP facility must be conducted in a professional and courteous manner.

(Division of Disability, Aging, and Rehabilitative Services; 460 IAC 2-4-36; filed Aug 23, 2001, 2:30 p.m.: 25 IR 79; filed Nov 26, 2007, 10:19 a.m.: 20071226-IR-460070254FRA; readopted filed Nov 30, 2007, 4:47 p.m.: 20071226-IR-460070733RFA; readopted filed Nov 20, 2013, 9:02 a.m.: 20131218-IR-460130457RFA; readopted filed Nov 13, 2019, 11:55 a.m.: 20191211-IR-460190489RFA; readopted filed Oct 8, 2025, 3:17 p.m.: 20251105-IR-460240500RFA)